1.)Suppose there is a zero-coupon bond with a face value of $1000, has 10 years left to maturity and a price of $100. What is its yield to maturity if interest is compounded annually? This can be calculated algebraically, or calculated in excel with solver, or by trial and error.

2.)Suppose there is a coupon bond that pays coupons semi-annually. This bond has a face value of $1000, has 10 years left to maturity, has a price of $800, and has an annual coupon rate of 6%. What is its yield to maturity? Note: yield to maturity is quoted as an annual rate, so whatever discount rate you find to work for 6-month periods must be doubled to get the final answer of yield to maturity. This cannot be calculated algebraically, so must be calculated in excel with solver, or by trial and error.